Shouldn’t the managements of Fannie and Freddie start preparing for the day when they’re “free” from the shackles of regulatory bondage? Shouldn’t CEOs Hugh Frater (Fannie) and David Brickman (Freddie) be holding high level meetings with their lieutenants regarding strategies for the future?
Of course, mortgage historians know that Berkshire took a bite at the GSE apple a few decades back. In 2000, Berkshire was one of the largest shareholders in Freddie...
In the Treasury blueprint, the Trump administration clearly states its position: “Congress should consider permitting additional classes of mortgage lenders to become FHLBank members.”
JMP Securities has a “market perform” rating on Impac Mortgage, the publicly traded nonbank that’s trying to carve out a space for itself in the non-QM sector but can’t resist the temptation of reaching for GSE refis...
Prior to joining Flagstar, Neufeld spent more than five years as SVP and treasurer of Mr. Cooper, where he managed the nonbank’s warehouse lines and was responsible for oversight of all treasury functions…
Fannie and Freddie can keep more of what they earn thanks to a new Treasury/FHFA edict, but buying stock in the two companies remains a dicey proposition.
One of these days, Fannie and Freddie will need to raise capital by selling stock. Rumor has it that institutional investors are already being courted, including Berkshire Hathaway.